Capital gain on sale of assets of Permanent Establishment (PE) is taxable in India even when PE ceased to exist

Facts The assessee a Cyprus company, was registered as a foreign company under the laws of Mauritius. The Mauritian tax authorities had issued a tax residency certificate to the assessee. The non-resident assessee owned a jack up rig which was used for drilling, prospecting and production of hydrocarbons in the offshore oil fields of India. The rig was given on charter basis to an Indian company which in turn leased it out to another Indian entity. The assessee had a PE in India. The rig was part of the said PE. The PE was taxed on net income basis after allowing depreciation on the said rig....